KPMG Financial Performance Index (KPMG FPI)

An index of corporate financial performance

FY25 began with a modest recovery in global corporate financial performance, driven by positive momentum across all regions in 1Q25, with Asia showing particularly robust growth. All sectors except Life Sciences Tools and Services enjoyed positive momentum in the first quarter, leading to an overall decline in the number of zombies reported.

Discover which countries and territories are performing among the best. Assess financial performance across sectors. Identify distressed companies. Compare your company’s financial performance against tens of thousands of public companies around the world. KPMG’s Financial Performance Index (FPI) is designed to be one of the clearest indices of corporate financial performance.

For investors, financiers, regulators and governments, the KPMG FPI seeks to provide insights into the relative strength and health of key markets and sectors. With millions of data points going back to 2017, these long-term trends can help you spot signs of improvement or impending distress.

Our latest data driven insights

Updated quarterly, this webpage allows you to interact with the data to analyze shifts, trends and related opportunities. You will also find key highlights from the most recent quarter and a spotlight on fast-moving industry sectors.

2025 started with an increase in overall FPI scores from 85.5 in 4Q24 to 89.9 in 1Q25 (up by 4.4 points). However, growth is likely to be short-lived due to the emerging global trade war fueled by tariffs and counter tariffs which have led to significant shifts in geopolitics and the global economy.
While short-term interest rates are set to decrease, tariffs are expected to create price shocks, posing challenges for central banks’ efforts to manage inflation. Furthermore, ongoing geopolitical tension has pushed many EU nations to raise their defense expenditure, potentially diverting resources from sectors with greater productivity potential.
All regions experienced an increase in FPI scores in 1Q25. North America witnessed the most significant increase from 67.3 in 4Q24 to 87.9 in 1Q25.
From a national standpoint, most countries, excluding a few in Europe and Asia, demonstrated an increase in FPI scores in 1Q25. However, even among the countries experiencing a decline in FPI scores, the index remained within the positive range of 88 to 94 points.
Asian countries and territories displayed predominantly positive momentum, with Singapore and Bangladesh showcasing robust growth of 14.6 and 13.7 percent respectively from the previous quarter. Portugal led the global ranking with an FPI score of 97.4, followed closely by Saudi Arabia with an FPI score of 96.7.
Except for Life Sciences Tools and Services, which experienced a slight decline (down by 0.2 points to 91.9), all other sectors enjoyed positive momentum in their FPI scores. Leading the way are the Raw Materials and Natural Resources sectors, which surged by 27.1 points to 87.0, and the Biotechnology sector, which increased by 6.9 points to 86.89. Notably, aside from these two sectors, all other sectors achieved FPI scores exceeding 90 points.
There was also a decrease in the number of Zombie companies (those that score an FPI of zero for more than three quarters), with the numbers falling from 1,286 in 4Q24 to 1,032 in 1Q25. Zombie companies accounted for approximately 3.4 percent of the total companies analyzed in the quarter.

Global FPI scores declined from 87.7 in 3Q24 to 85.5 in 4Q24. Argentina led the global rankings with an FPI score of 96.6.
The other top performing countries were primarily based in Asia, the Middle East and Europe, namely Portugal, Saudi Arabia and Japan. Some European markets also performed well from the previous quarter, such as the UK and Ireland.
At a regional level, Africa was the only region to experience an increase (up 1.4 points to 91.7). North America and South America recorded a decrease in FPI scores to 67.3 and 87.2 respectively. Europe also witnessed a fall in FPI scores (down by 0.6 points to 86.9).
At a country level, 4 out of every 5 countries in our research recorded FPI scores of more than 85. Belgium showed a notable improvement in 4Q24, increasing by 13.0 points to 93.4.
Most of the sectors reported FPI scores in the range of 85-95 points in the fourth quarter of 2024 with Transportation and Logistics (FPI score of 93.7) emerging at the top, and Raw Materials and Natural Resources (FPI score of 59.9 points) at the bottom. Notably, for the first time in the year, none of the sectors recorded scores above 95 points.
There was also a decrease in the number of Zombie companies (those that score an FPI of zero for more than three quarters), with numbers decreasing from 1,371 in 3Q24 to 1,286 in 4Q24. Zombie companies accounted for approximately 3.7 percent of the total companies analyzed in the quarter.

In the third quarter of 2024, global economic growth witnessed a slight uptick amidst challenges posed by conflicts and prevailing high interest rates. There is a global monetary easing cycle underway as central banks transition from restrictive to neutral policy stances.
Saudi Arabia led the global rankings with an FPI score of 96.0 in the third quarter of 2024. It was followed by the Netherlands, which reported an FPI score of 95.3.
Countries and jurisdictions from Asia dominated the top 10 in terms of FPI score rankings. However, Europe struggled in the third quarter of 2024, leading to a drop of 0.4 points (to 87.5) from the previous quarter.
Despite being in the bottom quartile, Canada and Australia achieved significant growth in their FPI scores, rising by 28.6 points (to 66.8) and 18.6 points (to 75.1), respectively, in the third quarter of 2024.
Agriculture and Husbandry recorded the highest growth amongst sectors (up by 2.1 points to 91.0), while the Energy sector saw the biggest decline, dropping by 0.6 points to 89.1.
Surprisingly, there was a notable increase in the number of Zombie companies, increasing from 865 in 2Q24 to 1,371 in 3Q24. These companies, scoring an FPI of zero for more than three quarters, accounted for approximately 3.8 percent of the total companies analyzed.

Global performance

The global corporate financial performance index increased from 85.5 in the fourth quarter of 2024 to 89.9 in the first quarter of 2025, marking a rise of 4.4 points. This represents the highest FPI score recorded globally since the first quarter of 2024.

However, the FPI team predicts scores will decrease in the next quarter as global economic growth weakens in 2025 due to uncertainty, largely stemming from the tariffs and immigration policies imposed by the US administration.

Sector performance

Raw Materials and Natural Resources witnessed the most robust growth, with scores rising from 59.9 to 87.0 in 1Q25, largely driven by the Metals and Mining sub-sectors. Commodity prices such as metals are trending upwards due to demand driven by the green transition and the global construction recovery, with higher US tariffs further increasing prices. Significant FPI score increases were also enjoyed by the Biotechnology sector.

Life Sciences Tools and Services was the only sector that observed a fall in FPI scores to 91.9 (down by 0.2 points).

Sector performance across regions

In the first quarter of 2025, different regions experienced varying performance in their sectors. Here is a breakdown of the regional comparisons:

Africa: All sectors in the region enjoyed growth, except for Consumer Markets, which dropped by 0.5 points to an FPI score of 96.7. On the other hand, Raw Material and Natural Resources sectors gained momentum, increasing by 8.5 points to 96.8. The growth acceleration in the region was mainly driven by lower inflation, domestic and international interest-rate cuts, and the benefits of market reforms initiated during the tight liquidity periods of 2022-24.
Asia: The Packaging Products sector registered an FPI score of 93.7 (down by 0.5 points). All other sectors experienced an upward trend in the region, with Infrastructure and Real Estate witnessing the highest growth, reaching an FPI score of 88.9 (up by 6.0 points). Despite challenges from the US administration, growth in Asia is expected to stabilize as the impact of monetary tightening fades and regional central banks continue easing cycles to support growth and employment.
Europe: Every sector in Europe demonstrated growth in the quarter, with Travel and Hospitality moving up by 13.1 points to 91.5. Notably, Aerospace and Defense reached an FPI score of 96.0, reflecting the EU's increased defense spending amid a changing US security position.
North America: The Pharmaceuticals and Raw Materials and Natural Resources sectors grew significantly, reaching an FPI score of 80.6 and 83.6 respectively. Meanwhile, Life Sciences Tools and Services observed a significant decrease of 5.3 points to 86.33, making it the lowest performing sector. It is expected that tariff shocks and policy uncertainty might lead the US into a mild recession in 2025, with a risk of a broader financial crisis affecting the region.
Oceania: Financial Services and Media and Entertainment sectors observed significant increases in FPI scores, reaching 84.9 and 85.3 respectively. However, the region also saw declines in multiple sectors including Life Sciences Tools and Services, Agriculture and Husbandry, and Trading Companies and Distributors.
South America: Similar to Europe, this region saw FPI score increases across all sectors. The Chemicals sector moved up by 17.7 points to 71.4, followed by Financial Services, which saw scores increase by 17.0 points to 92.0. Many expect current trade wars to have a huge impact on South American commodity exporters, who are heavily reliant on trade with China.

Zombies

Zombies are companies close to default, scoring zero on the KPMG FPI for three or more consecutive quarters.

The number of zombies decreased by a notable 19.8 percent in the most recent quarter. The Raw Materials and Natural Resources sectors, as well as the Technology and Telecommunication sectors, contributed the highest share of zombies with around 20.5 and 11.9 percent respectively, followed by the Biotechnology sector with around 11.6 percent.

What is the KPMG FPI?

The KPMG FPI distills a range of market and financial performance indicators into a single index covering nearly 40,000 public companies around the world.

The index scores companies on a scale of zero to 100, with zero indicating serious distress and 100 being best performing.

Since many companies tend to perform well for most of their lifespans, there is a natural bias towards a higher quartile score. As such, around 80 percent of the companies in our index score between 85 and 99.

As the KPMG FPI is a logit model, a drop below the average for a specific company can very quickly lead to an index score of zero.

When exploring this data, therefore, readers should consider:

The absolute score (zero to 100)
Comparisons across geographies
Comparisons across sectors
Relative performance against peers
Trends over time
Macro events which are driving trends and

Expected macro events which may affect future scores.

Want to see your company’s score?

To understand your company’s current index score, or to uncover deeper insights about specific markets or segments, contact your local KPMG member firm. KPMG’s global network of professionals have the data, sector and geographic experience to help you understand your score and tie it back to your business needs. Whether it is benchmarking, identifying targets, comparing sectors, or looking for trends over time, KPMG professionals can connect you to the information you need to capitalize on your opportunities. That is our business. Please contact us at in-fmkpmgfpi@kpmg.com to find out more.

Regional performance

Regional performance showed a positive trend, with every region reporting increases in overall FPI scores in the first quarter of 2025. There were notable performances from North America (up 20.6 points to 87.9), Oceania (up 13.2 points to 74.7) and South America (up 5.2 points to 92.4).

Country and territory performance: Quarter-over-quarter biggest gainers and losers

An analysis of the KPMG FPI country data shows that, quarter-over-quarter, the largest gains in KPMG FPI scores were experienced by companies headquartered in Singapore (up 14.6 points to 90.4), Australia (up 14.0 points to 73.5) and Bangladesh (up 13.7 points to 95.3).

Quarter-over-quarter declines in FPI scores were experienced by companies headquartered in Belgium (down 6.7 points to 89.7), India (down 3.1 points to 88.7), Ireland (down 2.6 points to 89.0) and Thailand (down 2.4 points to 82.8).

Distressed countries and territories

Given the natural bias for the KPMG FPI to score well-performing companies at high levels (typically between 85 and 99), this index provides a significant opportunity to spot distressed companies that fall outside of the normal range.

KPMG FPI is an index that combines traditional market performance indicators together with company, country and industry specific financial performance indicators into a single index number. This allows KPMG FPI to identify why markets are behaving in a particular way and support those findings with data-backed insights into what is causing the movement. It has also been proven to identify insights earlier than traditional market indicators.

In 1Q25, the KPMG FPI found 1,969 companies with a KPMG FPI score of zero. The largest concentrations of zero-indexed companies were headquartered in the US (552), Australia (280), Canada (280) and Hong Kong (SAR) (140).

Please visit the Zombie section to find out more about significant underperforming companies.

Methodology

The KPMG Financial Performance Index measures the financial health of individual companies. Based on an initial pool of more than 40,000 companies globally, the KPMG FPI identifies those companies, sectors, regions, countries and territories that are performing well and those that are underperforming. A higher score on the KPMG FPI represents strong performance.

The KPMG FPI model draws from the Logit Probability to Financial Default model (developed by John Campbell, Jens Hilscher and Jan Szilagyi), which is based on eight explanatory variables encompassing financial and market variables, to assess the overall financial health of a company. The KPMG FPI is based on raw data from S&P Capital IQ database.

We release our insights publicly every quarter. However, the model can be run on any given day to reflect live market changes, so please reach out to your local KPMG member firm, or contact us at in-fmkpmgfpi@kpmg.com if you would like additional information.